Digihost Repurposes Alabama Bitcoin Mine for HPC and AI Hosting

Digihost, a Nasdaq and TSXV-listed bitcoin mining operator, has launched a new subsidiary to build data centers tailored for artificial intelligence (AI) and high-performance computing (HPC) applications.

The company announced on Monday that US Data Centers Inc., the newly formed subsidiary, will manage the conversion of its existing site in Columbiana, Alabama, into a Tier 3-certified facility. Digihost acquired the property in 2022.

The Alabama facility will be developed in two phases, with a combined capacity of 55 megawatts (MW), according to the release. The first phase, delivering 22 MW by Q2 2026, is expected to cost $176 million. A second phase will add 33 MW by early 2027 at an estimated cost of $264 million.

Digihost plans to finance the $440 million project primarily through debt, supported by future revenue from the completed facility, though that amount is about four times Digihost’s current market capitalization. Last week, the company raised $6.6 million in an “over-subscribed” private placement.

The move reflects broader industry trends as mining companies race to scale infrastructure for AI workloads as a revenue diversification strategy. Digihost CEO Michel Amar framed the Alabama initiative as a response to “unprecedented demand” for AI infrastructure, stating the facility would prioritize scalability and advanced cooling systems.

However, the pivot comes as Digihost’s existing mining operations in North Tonawanda, New York, face legal and regulatory hurdles.

The City of North Tonawanda imposed a two-year moratorium in July 2024, banning further expansion of AI and Bitcoin mining data centers after years of noise complaints from residents.

In November, the Supreme Court of New York ordered the state’s Public Service Commission (PSC) to reassess Digihost’s 2021 acquisition of a 60 MW gas power plant in North Tonawanda. While the court did not overturn the acquisition, it introduced uncertainty as the PSC review continues.